tja 0 Posted May 14, 2018 Report Share Posted May 14, 2018 A governmental plan requires employees to contribute to the Plan post tax. The monthly benefit reflects both the taxable and non-taxable portions and are reported appropriately. If a retiree dies before receiving benefits equal to his or her contributions (plus interest at the plan's rate), then his or her beneficiary receives a refund equal to the difference between the total benefit received and the retiree's post-tax contributions (plus interest). Is this refund taxable? How is the refund reported to the beneficiary? Link to post Share on other sites
Luke Bailey 258 Posted May 16, 2018 Report Share Posted May 16, 2018 You need to look at the Section 72 regs. I would expect that if there is a lump sum refund of contributions on death, then the remaining basis is all recovered (i.e., sum of all post-tax contributions, minus amounts previously recovered under Section 72). But I can't quote you the provision. Again, it should be in the Section 72 regs. Link to post Share on other sites
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